Correlation Between Goliath Resources and Thesis Gold
Can any of the company-specific risk be diversified away by investing in both Goliath Resources and Thesis Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Goliath Resources and Thesis Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goliath Resources and Thesis Gold, you can compare the effects of market volatilities on Goliath Resources and Thesis Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Goliath Resources with a short position of Thesis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goliath Resources and Thesis Gold.
Diversification Opportunities for Goliath Resources and Thesis Gold
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goliath and Thesis is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Goliath Resources and Thesis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thesis Gold and Goliath Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Goliath Resources are associated (or correlated) with Thesis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thesis Gold has no effect on the direction of Goliath Resources i.e., Goliath Resources and Thesis Gold go up and down completely randomly.
Pair Corralation between Goliath Resources and Thesis Gold
Assuming the 90 days horizon Goliath Resources is expected to generate 0.89 times more return on investment than Thesis Gold. However, Goliath Resources is 1.12 times less risky than Thesis Gold. It trades about -0.04 of its potential returns per unit of risk. Thesis Gold is currently generating about -0.33 per unit of risk. If you would invest 118.00 in Goliath Resources on September 1, 2024 and sell it today you would lose (4.00) from holding Goliath Resources or give up 3.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goliath Resources vs. Thesis Gold
Performance |
| Timeline |
| Goliath Resources |
| Thesis Gold |
Goliath Resources and Thesis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goliath Resources and Thesis Gold
The main advantage of trading using opposite Goliath Resources and Thesis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goliath Resources position performs unexpectedly, Thesis Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Thesis Gold will offset losses from the drop in Thesis Gold's long position.| Goliath Resources vs. Eskay Mining Corp | Goliath Resources vs. Lion One Metals | Goliath Resources vs. Cassiar Gold Corp | Goliath Resources vs. Blackrock Silver Corp |
| Thesis Gold vs. Lion One Metals | Thesis Gold vs. Goliath Resources | Thesis Gold vs. Dolly Varden Silver | Thesis Gold vs. Nevada King Gold |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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